The rise in adoption of digital wallets has been astronomical across the globe. Although this was largely due to the pandemic, it’s likely that they are here to stay as the shift to a cashless society is inevitable.
Why Have Digital Wallets Become so Popular?
A few years ago, there was a high chance that when you went into a store and wanted to pay with your smartphone, you would probably have been let down. Many merchant payment terminals were not yet set up to accept Near-Field Communication (NFC) payments (the tech that enables contactless payments) and adoption was extremely slow. Thanks to the pandemic, this is no longer the case!
The Covid-19 pandemic drastically sped up the adoption, as there was a sudden need for people to completely switch to cashless payments within a matter of weeks. During the lockdown periods, many people were confined to their homes and, therefore, turned to buying products online for delivery directly to their homes. Digital wallet payments not only make it easier for consumers to purchase items online, but they also offer a safer alternative to physical cash and card payments.
How Likely are Digital Wallets to Succeed in The Future?
From what the team at Traderoot has gathered, the future of digital wallets is as bright as it can be and there’s no foreseen barriers that are likely to hinder their growth. The pandemic helped trigger their adoption, bringing with it the convenience, security and safety that the tech provides.
“There’s no doubt, Covid-19 changed the way we shop and pay for goods and services, and there’s no turning back now,” – says Brett Dungan, Director of Traderoot. “Digital wallets have proven themselves during the pandemic and they should be seen as a platform for future growth.”
How Safe are Digital Wallets?
To answer one of the most common questions, the short answer is, yes, digital wallets are as safe as any other financial transaction platform.
Digital wallets bring with them a unique sense of safety: Tokenisation. Thanks to this tech, customers can make countless purchases without having to worry about revealing their actual card info. Whenever you make a payment using a card through a digital wallet, the merchant will only receive the payment token to authorise the payment, never dealing directly with your sensitive data.
At Traderoot, we believe that digital wallets and other forms of contactless payments are here to stay! If you need any assistance with developing a digital wallet contact the team at Traderoot today!